Fonterra buys 18.8% stake in Beingmate

Fonterra Co-operative Group, the world's largest dairy exporter, completed its purchase of 18.8 percent of equity shares from Chinese infant food maker Beingmate Baby &Child Food Co Ltd on Friday.

The New Zealand dairy giant said it is going to work on increasing its stake to 20 percent. The purchase at 18 yuan ($2.87) per share would cost Fonterra 3.46 billion yuan.

Fonterra Chief Executive Theo Spierings said that the completion of the purchase of an 18.8 percent stake in Beingmate is an important milestone for both companies.